Heritage Property - Purchase Or Sale Of Properties With Historic Importance In Germany

Heritage property, memorials and monuments: buying or selling of real estate properties

The modernisation of memorials and monuments enjoys great popularity in the real estate business sector. Cultural monuments have importance in the public interest in terms of art, history and science. The memorials and monument real estate agency distinguishes between a single monument and an ensemble or whole areas of local monuments. The popularity of listed real estate is often based on a combination of historical architecture, old crafts or building technique, tradition and history, in important contrast to the less characteristic buildings of today’s era. Due to these special properties, and the limited availability of quality refurbished monument real estate in the metropolitan areas of Germany, higher purchase prices and rent can be achieved. Monument real estate enthusiasts are economically affluent. Investment in monuments is encouraged by the state because of the benefit to strong public interest. Tax benefits can be significant, especially for private investors with marginal tax rates. Investors are also offered special depreciation allowances. Modernization costs may be incurred by the buyer over a 12-year amortized spread. This means that in the first 8 years, an annual depreciation rate of 9% can be levied for each four-year period, resulting in almost 7% tax deduction. In addition, the original old buildings may still be depreciated linearly. The amount is determined in accordance with § 7 paragraph 4, Income Tax Act Germany (ITA), as well as by the price of conventional real estate or buildings. A monument erected after 31st December 1924 has an annual depreciation rate of 2% over a maximum term of 50 years. A memorial built before 1st January 1925 at 2.5% per year may be considered for tax purposes up to a maximum of 40 years. The special depreciation allowances for capital investors of listed properties are regulated by paragraphs § § 7h / i of the Income Tax Act Germany (ITA). It is not speculation to claim that after a holding period of 10 years, a monument can also take care of advertising, finance, administration, operation or maintenance costs, which are tax deductible. Even an owner-occupier who purchases a monument in a lucrative real estate area is eligible for tax benefits. In the case of a monument that has been owned for 10 years, the tax on modernization costs at 9% each year can be waived. This has been regulated by the special depreciation in § 10f of the Income Tax Act Germany (ITA). The investment in real estate monuments thus combines quite a number of advantages, resulting in little expense for a new tenant or buyer. Lovers of rare buildings will find that consistently outstanding rents and purchase prices can be achieved. However, historic building investment that requires further maintenance and re-design must have the conservation authority's permission. Naturally, this should be agreed in advance. The potential use of castles and palaces will be considered before purchase or rent, but commercial enterprises are viable. Conversions of monuments to hotels, restaurants, rehabilitation centres or private schools are all conceivable.

Buying Guides for heritage property, memorials and monuments in Germany

KARODI-The Investment Property Specialist and real estate agent from Germany is available and ready to help you in the sale or purchase of real estate memorials / monuments nationwide. In particular, we are active in the cities of Aachen, Bergisch Gladbach, Berlin, Bonn, Dortmund, Dusseldorf, Essen, Hamburg, Frankfurt, Koblenz, Cologne, Leverkusen, Mainz, Munich, Munster, Neuss, Stuttgart, Solingen, Wiesbaden and Wuppertal, also in the territory of the federal states of North Rhine-Westphalia (NRW), Hessen and Rhineland-Palatinate.